Who doesn’t want to strategically position their business in the United Arab Emirates (UAE) without spending too much on taxes? To this extent, offshore company formation in the UAE is one of the most profitable options for you. Dubai is the most flourishing Emirate. So, if you are considering the UAE, Dubai is the place to form an offshore company. But before you proceed with offshore company formation in Dubai, let us learn a little more about it.
Offshore Company Setup in Dubai
When you register a company in Dubai for tax benefits but operate business activities outside the country, it is called a Dubai offshore company.
The whole reason for offshore company formation in Dubai is to reduce tax liability for the income generated outside the country. In simple words, you don’t have to pay corporate tax in the UAE since your company is generating profits outside the UAE. The government provides you with flexibility for offshore company setup. Starting from an international business consultant, opening a shipping company and general trading firm, everything can be achieved with an offshore company structure.
For example, an entrepreneur from Malaysia does business or trades with clients in the GCC countries. Setting up an offshore company in Dubai will help them avoid paying taxes in their home country. The Jebel Ali Free Zone Authority (JAFZA) is the largest free zone in the Emirates for offshore company setup.
Types of Offshore Company Structures in Dubai, UAE
Dubai offers many options for company structures. Some of the offshore company structures available in Dubai are limited Liability Companies (LLCs), private limited companies, holding companies, and special-purpose vehicles.
Advantages of Setting Up an Offshore Company in Dubai
You can enjoy a wide range of benefits when opening an offshore company in Dubai. Let us check with some of them here:
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- Tax benefits: UAE offshore companies bear no tax liabilities on their profits. This means you don’t have to pay corporate income, personal income, capital gains, or inheritance tax for an offshore company.
- Asset protection: Once you start an offshore company, you don’t have to worry about protecting the assets. The regulations in the UAE for safeguarding your assets in an offshore company are strong enough to protect your assets.
- Ease of company setup: The offshore company setup process in Dubai is easy. Only a few requirements and documentation are needed. It takes only a few days to complete the whole procedure.
- Confidentiality: The country offers a high level of privacy and confidentiality to protect your information. The personal information of shareholders and directors of the company is not disclosed to the public.
- Strategic location: The UAE is ideally located between Asia, Europe and Africa. It is easier for businesses to connect with the rest of the world. You can rapidly expand your business in these massive markets.
- Better funding options: Offshore companies can quickly secure international financing, so you won’t have to worry about funding.
Features for Offshore Company Formation in Dubai
There are some eligibility criteria which you have to meet to start an offshore company in Dubai:
- A minimum of one shareholder and director is necessary for offshore company formation in Dubai.
- Only the JAFZA offshore company allows you to own real estate in th Emirate out of all the other offshore jurisdictions.
- You can open a multi-currency bank account for your offshore company in Dubai.
- You can enjoy 100% foreign company ownership in a Dubai offshore company.
- There are no bearer shares allowed for a Dubai offshore company formation.
- Your offshore companies cannot conduct business directly with the UAE residents.
- The registrar is responsible for looking after the offshore company affairs in Dubai.
The Process of Offshore Company Formation in the UAE
If you are wondering about how to start an offshore company in Dubai, follow the below-mentioned steps:
Step 1: In the first step, finalize the company name. Ensure all the trading rules are followed when deciding on one.
Step 2: Fill out the application form and submit it with the required documents.
Step 3: Draft the Memorandum of Association (MOA) and Articles of Association (AOA) for the offshore company.
Step 4: The final step is to open an offshore bank account. This will help you manage the company’s finances.
Documents Required for Setting Up an Offshore Company in Dubai
As mentioned earlier, you must submit certain documents to the authority. These include passport copies and curriculum vitae of the shareholders and directors, business plans, proof of address, a copy of the AOA, and relevant Emirates IDs of the members.
How Can We Help?
Now that you have an idea for an offshore company in Dubai, you must comply with the laws and regulations and understand how to open one. Business Setup Worldwide (BSW) can make this process easier. We are an experienced corporate service provider, having assisted people for more than eight years. We customize our end-to-end services for offshore company formation in Dubai according to your requirements. So contact us right away to get more information.
